3. Economic indicators
Population 206 million (July 2012 est.)
Currency Real; 1 EUR = 2.3 BRL
GDP $2.284 trillion (2011 est. )
GDP per capita $11,600 (2011 est.)
GDP growth rate 2.8%
Inflation rate 6.9% (2011 est.)
Unemployment rate 6.1% (2011 est.)
Pop. below poberty line 26% (2008)
Agricultural products:
coffee, soybeans, wheat, rice, corn, sugarcane
Industrial products:
textiles, chemicals, cement, lumber, tin, steel, aircraft, m
otor vehicles
3
http://www.auwi-bayern.de/awp/inhalte/Anhaenge/Exportbericht-Brasilien.pdf

4. Economic indicators
Exports Imports
$250.8 billion $219.6 billion
transport equipment, iron ore, soybeans, machinery, electrical and transport equipment,
footwear, coffee, autos chemical products, oil, automotive parts
http://www.auwi-bayern.de/awp/inhalte/Anhaenge/Exportbericht-Brasilien.pdf 4
EIU, CIA Factbook

5. Political system
& influence on business
• Official name: Federative Republic of Brazil
• President: Dilma Rousseff (since 1 January 2011); four years, chooses a cabinet
• Membership in international organizations: UNO & subgroups, IMF, WTO, MERCOSUR, …
Pro´s Con´s
Since 1990s: trade liberalization Considerable bureaucratic interference &
Import duties being reduced gradually regulation
FDI is generally welcome (long-term, Multiple & high taxes
contribution to economic development)
Some geographic tax incentives (but usually Still some government-owned monopolies
treated equal to national firms) (utility sector)
Special federal programs reward investments Restrictions on certain strategic sectors: Air
in the poorer North & Northeast regions Transport & Publishing;
Certain restrictions in financing &
informatics sector & ownership of rural land
5
http://www.pwc.com.br/pt/publicacoes/assets/doing-business-brazil05.pdf

6. Manager’s cultural behavior
• Manager's personal style: great significance for
getting respect; his bearing & technical abilities very
important
• Relationships = key importance, the boss &
subordinates work hard to foster a relationship
based on trust & respect
• Managers are expected to manage; boss gives direct
instructions
Implications for foreign managers
• Importance of creating long-term relationships & respect
• Instructions from the boss have to be carried out without too much discussion or
debate: If there is debate: should be done in private to avoid showing public disrespect
to the hierarchy
• Giving instructions to subordinates: as clear, precise and comprehensive as possible.
Subordinates will undertake the exact tasks they are given but no more
www.worldbusinessculture.com/Brazilian-Management-Style.html 6
http://geert-hofstede.com/brazil.html

7. Country Comparison
Dimension Cultural Admin./ Polictical
Brazil High LTO: Brazilians accept more than one truth MERCOSUR member;
and change as a part of life; Diverse Ethnicities Currency Brazilian Real;
Federative republic
Spain Very Low LTO: Spanish people like to live in the Part of the EU;
moment, without great concern about the future; Currency Euro;
Different Ethnic Groups Constitutional monarchy
Germany Low LTO; Low PD: Direct and participative Part of the EU;
communication and meeting style is common, Currency Euro:
control is disliked; Ethnic Groups: German 91.5%, Federal republic
Turkish 2.4%
7

8. Country Comparison
Dimension Geographic Economic
Brazil Latin-America; GDP: $2.09 Trillion (2010)
8.547.404 km² (195 Inflation Rate: 6.9%
million inhabitants), Unemployment Rate: 6,1%
6 climate regions Sectors: Services 66%, Industry 28%, Agriculture 8%
Resources: 14% of the world's renewable fresh water
Spain Southwest Europe; GDP: $1.41 Trillion (2010)
504.645 km² (46 Inflation Rate: 2.00%
million inhabitants), Unemployment Rate: 23.3%
3 climate zones Sectors: Services 66.91%, Industry 11.7%, Agriculture 2.3%
Germany Central Europe; GDP: $3.28 Trillion (2010)
357. 104 km² (82 Inflation Rate: 2.11 %
million inhabitants), Unemployment Rate: 5.8%
moderate climate 3 Sectors: Industry 28,1% mainly Technological and Automotive
zones industry, Agriculture 0,8%
8
http://www.state.gov/r/pa/ei/bgn/2878.htm

9. Summary
• Culture: Long-Term oriented
• Admin./Politics: Restrict certain sectors
• Geographic: Diverse and large, but also isolated
• Economic: High Inflation; bound to US and China; High
resources and importance of Agriculture
• Compared to Germany and Spain:
+ Economic Growth
+ Agriculture and Resources
- Diversity
- Geographic Location
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